The Lang Cat is an advisory or a consultancy company which advises in financial services. The company is based in the United Kingdom and is trusted by quite many platforms, pension, publications etc.
AJ Bell is another company but this company deals in consultancy services and normal services regarding investment in online platforms and other stock broking services. AJ Bell is a public limited company and is listed on the London Stock Exchange. AJ Bell studied and made the report on The Lang Cat’s platform ‘wreckage’.
The platform ‘wreck’ of The Lang Cat
A report suggests that currently The Lang Cat’s platform market is struggling hard to strive in the market. This is because of the failure of its ability to secure a buyer for Cofunds. Just because of this, fingers are being pointed at the whole sector. The other facts suggested about the platforms of The Lang Cat in the report are:
- The only way how the platforms can survive is to evolve to a better platform. Such evolution must be done rapidly in order to strive. Evolution must be done in the back office systems and steps must be taken to improve cost saving techniques of the platform.
- The setting up of platforms is not suitable for pensions and pension freedoms. The system in many cases is very much manual and it can’t help in tasks like drawdowns and withdrawals.
- Providers are more focused on developing new products than in checking on the managing ability and security of the existing customers of funds in a platform.
This is because of why the consultancy once declared the platform as ‘broken’. According to it switching this broken platform is a trouble and of great difficulty. The only way around is to increase the velocity of the moving money.
The Lang Cat at first thought that this condition of the platform may be because of the companies with which they were in compliance. These teams understanding the situation act being zealous more than enough in matters relating to risk management purposes.
What are the remedies decided?
The Lang Cat team decided to mend their platforms. They researched on the problems and the report published by AJ Bill about them and came to a decision to create an advice process which will be more streamlined and perfect. It would also fulfill all the required factors where it was lagging behind like
- Satisfying all the regulatory requirements of the platform.
- Controlling what it couldn’t control before i.e. the risks involved in the businesses.
- Clients should understand them with more clarity and reliability.
- Make the platform cost effective as far as possible for everyone who is involved in the platform.
Why not Platform Switching?
After surveying around 95 other advisory firms, The Lang Cat found and became quite experienced about the idea of platform switching. Around 30% of the surveyed firms regarded this idea as “absolutely brutal”. They said that it is totally not an easy undertaking but a very huge undertaking and it is very risky.
The remaining 70% of the surveyed firms seemed to be constrained to recommend a platform switch because of their suitability, cost and complexity of the administration in relative terms. The Lang Cat then finally understood the consequences and decided to put an armour to the idea of platform switching.